Monday, August 9, 2010

MAKING MONEY, CREATING WEALTH

This week, I heard some interesting statistics on Public
Television. A few years ago Japan suffered through a deep
recession for almost 10 straight years, while America had
relative boom times. During those ten years, the following
occurred:
Japanese citizens saved 27% of their income; Americans saved
essentially nothing.
The average Japanese family has a net worth of $177,000; the
average American family has a net worth of less than $3000.
The average American family has almost $12,000 in consumer
debt -- in other words, many of us actually have a negative
net worth!
We make more money than any other nation on earth; and we
spend about 103% of what we make. This makes no sense!
The key to creating wealth is not simply in making more
money. The key is understanding how money works, saving a
bit every month, and using compound interest to your
advantage. This is not complicated. It is not very exciting
or difficult, but we seem unable (or unwilling) to do it.
Read a few good books on how money works. Find tools and
resources that can help you. Spend a bit less than you make
and invest the difference. You'll be glad you did!

Quotes of the Week
"Be faithful in small things because it is in them that your
strength lies." -- Mother Teresa
"How wonderful it is that nobody need wait a single moment
to improve the world." -- Anne Frank
"The intuitive mind is a sacred gift and the rational mind
is a faithful servant. We have created a society that honors
the servant and has forgotten the gift." -- Albert Einstein
"Only those who will risk going too far can possibly find
out how far one can go." -- T. S. Eliot

Friday, August 6, 2010

HOW TO MAKE A CREATIVE PRACTICE A HABIT

Habits often have a bad reputation...but some habits can be helpful and healthy. Stop and think about your talents for a moment. What are you not doing that would help you enjoy your talents more, get more done or be more effective? It might be a practice that worked well for you in the past but that you stopped doing for some reason...or it could be a new activity that you'd like to try. It's possible to turn helpful or healthy practices into new habits. Here's a step by step guide:
1. Identify a practice that you'd like to become an automatic part of your life.
Perhaps you want to spend regular time honing your craft. Maybe you want to complete a particular amount of creative work each week. Or meditate regularly. What practices would you like to turn into habits? Select one of these habits as your target habit. (It's helpful to focus on one at a time).
2. Be specific and concrete.
Instead of saying 'write more', identify exactly how much you want to write. "I want to write at least five pages a day, at least five days a week, every week." OR "I want to spend at least an hour a day writing, at least four days a week, every week." The more specific the practice, the likelier it will become a habit.
3. Ask yourself: why?
Identify the benefits of starting this habit. (For example, if I practice my sousaphone at least an hour a day, I'll become a better musician; I'll increase my repertoire; I'll do better in auditions; I'll feel so much better). Write down as many reasons as possible to start your new habits and practices and keep them handy. Review your list at least daily.
4. Whittle your intended habit into reasonable, doable baby steps.
If your target habit is to compose a new song every day, for example, then you might begin the process by committing to write a song a week (assuming that sounds realistic for you). After that becomes second nature, aim for two songs a week. When, eventually, that practice seems like old hat, go for three a week...until eventually you are writing a song every day.
5. Start small.
Your beginning practice should be so easy it's laughable. Guarantee your success. Returning to the last example, if writing a song a week is easy as pie, that's a great place to start. If, however, the notion of writing a song a week puts you in a sweat, then choose something smaller and easier. Aim for a viable chorus or verse instead. Still shaking? Aim for a musical idea or a cool phrase that might become a lyric someday.
Rest assured, wherever you start is fine. AVOID JUDGING yourself or being too hard on yourself. Pick a practice that's really, truly easy.
For example, let's say your target habit is to paint for at least an hour a day. You might start with the practice of painting for at least five minutes a day, at least four days a week. "Five minutes? I can't get anything done in five minutes," you are apt to wail. Yes you can. You can gesso a canvas. You can sketch out a figure. You can apply paint.
"But five minutes a day isn't going to accomplish anything!" You'd be surprised what you can get done in five focused, undistracted minutes, dedicated to a specific task.
The truth is, if you aim for minutes, you may well do more. What matters is that you do AT LEAST five minutes, at least four times a week.
Let me repeat that: The important thing here is to ESTABLISH THE HABIT. The amount of time doesn't matter. What you're actually doing doesn't matter. What you get done doesn't matter. As long as you are taking steps towards your intended target habit, you are on track. That's why it's helpful to start with easy practices. The easier the initial practice, the more likely you'll cultivate the new habit you desire.
6. Set yourself up for success.
Start your new, easy practice when you're really ready. Put in place the support or resources you need -- be it information, a teacher/mentor/coach or a trusted "progress buddy" (like a diet buddy to keep you on track).
If you're the kind of person that needs to make a public commitment to get yourself to do something, then email your friends and tell them your intentions. Ask them to hold you accountable to your new practice. In contrast, if you suspect your 'friends' might be jealous or competitive or might unknowingly undermine your efforts, then it doesn't serve you to tell them what you're up to.
7. Monitor your progress.
Every day, make note of what you did, related to your target habit.
8. Remind yourself why you're doing this.
Until your target habit becomes like breathing for you, make it a daily practice to review your 'benefits' list (from step 3). This only takes a few seconds and can really help.
9. Praise yourself.
This is non-negotiable. It'll feel pretty darned good to do what you set out to do...yet it's important to acknowledge you successes in some tangible way. Give yourself bonus points for every day that you carry out your intended new practice. You can mark 'X's on a calendar. You can give yourself gold stars. You can email your creativity buddy at the end of the week to say 'I did it!'
10. Be kind and gentle with yourself.
If you happen to not do what you intend, avoid beating yourself up. Simply record what did (or didn't) happen. I'm human and therefore fallible. It's no big deal. Let's move on. Tomorrow is another day. Look at the bigger picture: okay, I missed yesterday, but I did my new practice eight times in the past two weeks. That's eight days I did great. Overall, I can see I'm establishing this new target habit -- I'm making this practice an automatic part of my life, most days.
11. If you find yourself consistently missing your intentions, then it's time to dig deeper.
What's going on? Do you really want to establish this new target habit? If no, then review your list of habits from step #1, pick a habit you DO want to establish and start over with that. If yes, then perhaps you're trying to do too much too fast. Try breaking your daily/weekly practices into smaller, easier increments. Or are you trying to start too many new habits at once? If so, pick one to focus on and leave the other target habits for now.
12. When you find yourself meeting your initial baby step practices regularly and consistently, up the ante a bit.
Aim to do a little bit more. Repeat the process (steps 6 - 11) as you gradually work up to performing your target habit regularly and consistently. Build momentum, slowly but surely.
13. Be patient.
Slow and steady progress is better than short-term maniacal enthusiasm followed by sudden burnout or abandonment of your intentions. Avoid thinking about what's to come -- just focus on what you need to do today. Depending on what it is you're trying to do, it can take 21 -- 30 days -- or more -- to establish a new habit.
14. When you've successfully established your new habit, be sure to reward yourself for that milestone.
Give yourself a healthy, happy treat -- you deserve it.
After your first target habit is well established and ingrained, you can return to your list of habits from step #1, select a new habit and go through the process again. You'll find that each time you go through the process, you'll get faster and faster at establishing your new target habits.

Wednesday, August 4, 2010

SELLING TO TODAY'S CUSTOMERS

What is selling? In its simplest terms, selling is the process of helping a person to conclude that your product or service is of greater value to him than the price you are asking for.

How Markets Work
Our market society is based on the principles of freedom and mutual benefit. Each party to a transaction only enters into it when he feels that he will be better off as a result of the transaction than he would be without it.
The Three Options
In a free market, the customer always has three options with any purchase decision. First, the customer can buy your product or service. Second, the customer can buy the product or service from someone else. Third, the customer can decide to buy nothing at all.
Convincing the Customer
For the customer to buy your particular product or service, he or she must be convinced that it is not only the best choice available but he must also be persuaded that there is no better way for him to spend the equivalent amount of money. Your job as a salesperson is to convince the customer that all these conditions exist and then to elicit a commitment from him to take action on your offer.
Customize Your Sales Presentation
The field of professional selling has changed dramatically since World War II. In a way, selling methodologies are merely responses to customer requirements. At one time, customers were relatively unsophisticated and poorly informed about their choices. Salespeople catered to this customer with carefully planned and memorized sales presentations, loads of enthusiasm and a bag full of techniques designed to crush resistance and get the order at virtually any cost.
Treat Them With Respect
But the customer of the 1950s has matured into the customer of the 21st century. Customers are now more intelligent and knowledgeable than ever before. They are experienced buyers and they have interacted with hundreds of salespeople. They are extremely sophisticated and aware of the incredible variety of products and services that are available to them, as well as their relative strengths and weaknesses of those products. Many of them are smarter and better educated than most salespeople and they are far more careful about making a buying decision of any kind.
The Need For Speed
In addition, they are overwhelmed with work and under-supplied with time. Because of the rapidly increasing pace of change, down-sizing, restructuring and the competitive pressures surrounding them, customers today are harried and hassled. They are swamped with responsibilities, impatient, suspicious, critical, demanding, and spoiled. To sell to today's customer requires a higher caliber of sales professional than has ever before been required. And it is only going to become tougher and more complicated in the months and years ahead.
Action Exercises
Here are two things you can do immediately to put these ideas into action.
First, think continually about how you can convince your customer that your product or service is the very best available. Why does he buy, or refuse to buy?
Second, upgrade your knowledge and skills every day so you can sell more effectively. Remember, your customers only get better when you get better.

Monday, August 2, 2010

What Recession?

Everyone knows we are in a serious recession. Every day the
news is filled with stories of unemployment, skittish
consumers, foreclosures, poor business conditions and fears
of a "double dip." Businesses, large and small, are
suffering. Everyone knows this and it's become a mantra of
our times.
Except for those who know better. In the midst of all the
bad news, some businesses are expanding. Some are growing,
adding new customers, finding solutions and getting rich.
How do they do it? They have found a way to add unexpected
value, make larger contributions, solve problems and make
life better for their customers. So should you!
Some have reduced prices, added features or benefits. Others
have created new divisions or products and are penetrating
markets they might never have considered before the "hard
times" forced them to be creative and think in new ways.
Human nature has not changed. Everyone still loves a
bargain. People still want solutions, benefits and great
customer service. Yes, in many cases margins are down and
making the sale has become harder. Yes, the old exuberance
is gone and now you must earn business in more thoughtful
ways. But that does not change the fundamental equation:
People want stuff!
To profit in these "hard" times the old principles still
apply. Find a need and fill it. Provide value. Go the extra
mile. Listen to your customers and pay attention! Hear what
they need and want. Work with them to find effective,
efficient solutions and they will still beat a path to your
door. It's easy to make money when times are good, but the
really great fortunes are made when times are hard. The
businesses who are willing and ready to partner with their
customers actually take advantage of hard times to forge
bonds of loyalty that endure.

Quotes of the Week
Follow your bliss." -- Joseph Campbell
“Imagination is more important than knowledge. Knowledge is
limited. Imagination encircles the world." -- Albert Einstein
"Courage is doing what you are afraid to do. There can be no
courage without fear." -- P. Hayes
"The greatest thing in the world is to know how to be one's
own self." -- Montaigne